Tom Essaye: Ethereum’s Outperformance Over Bitcoin Carries Equity Market Signals
ETH/BTC rallies have historically preceded stock market peaks
Bitcoin Vs. Ethereum: Why I’m Closely Watching Their Trading Relationship
Since early July, a noteworthy shift has emerged in the crypto space, with Ethereum meaningfully outperforming Bitcoin, according to Tom Essaye, president of Sevens Report Research. The long-ETH/short-BTC trade has accelerated rapidly as both cryptocurrencies surged toward record highs.
At first glance, investors might dismiss the move as noise. But Essaye noted that past accelerations in the ETH/BTC ratio often aligned with powerful equity rallies that eventually gave way to broader market peaks.
“In prior cases over the last 10 or so years, every time we have seen such a robust and pronounced rise in the ETH/BTC crypto-pair, stocks have been sprinting higher in lockstep,” Essaye said. However, he cautioned that once the momentum faded from those rallies, equity investors who did not raise their guard often faced sharp pullbacks.
Bottom line: While the latest ETH/BTC surge reflects strong demand for Ethereum, it may also serve as an early warning indicator for stock markets if the historical relationship holds true.
Also, click here to view the full article on Moneyshow.com published on September 29th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.
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